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Kentucky sues VGW, Kalshi and Polymarket over alleged illegal gambling

Regulation

Kentucky Attorney General Russell Coleman said the state filed three lawsuits against VGW, Kalshi and Polymarket over alleged unlicensed gambling. The cases claim Kalshi and Polymarket offer sports-related contracts without state sports betting licences; the Kalshi action also names Coinbase, while the Polymarket case identifies Robinhood and Webull as affiliates.

The lawsuits challenge whether prediction-market sports contracts must comply with Kentucky gambling licensing and consumer-protection rules.

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Enforcement & compliance

Utah sues Kalshi and Susquehanna over alleged illegal gambling

Utah Attorney General Derek Brown has sued Kalshi and market maker Susquehanna in Utah’s Third Judicial District Court, alleging illegal online gambling. The lawsuit estimates that Kalshi received between $30.6 million and $61.2 million in fees from its Utah operations and seeks to stop the service in the state. Kalshi disputes that its sporting event contracts constitute sports betting and says federal regulation applies.

A lawsuit has been brought by Utah's attorney general, Derek Brown, against Kalshi, a prediction market operator, and Susquehanna, the market maker dedicated to it, alleging illegal online gambling. The case was lodged in the Third Judicial District Court in and for Salt Lake County, Utah. Utah wants the court to halt Kalshi's operations within the state and to require the company to adopt a third-party geolocation provider so that state residents cannot reach its services. Restitution for resident losses and disgorgement of the defendants' financial gains are also sought by the state.

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